Minneapolis-based Northern Oil & Gas said June 16 it is growing its Permian Basin position with three deals for 2,900 net acres with two-stream net production of 2,200 boed (66 percent oil) in Delaware Basin for $102.2 million. Located in Reeves County in Texas and Eddy and Lea counties in New Mexico, the assets are primarily operated by Mewbourne Oil, Colgate Energy, ConocoPhillips and EOG Resources, whose development programs are expected to increase Northern’s share of output to 6,500 boed in 2025. Northern expects production of 3,700 boed in the second half of 2021. Closing is expected Aug. 1. The assets include 5.3 net producing wells, 5.0 net wells in process and 23.1 net undrilled locations.
Adam Dirlam, COO, said, “We are acquiring high return core properties with top operators and assets with significant inventory and growth potential, and (we are) engaging in a transaction expected to meaningfully impact Northern’s free cash flow profile.”